In the past few decades, globalization has brought many changes. The market for goods and services has become more diverse. In addition, the role of women is changing and now they are willing to take challenging tasks that have for long been preserved for traditional groups. Minority and other non-traditional groups have also become empowered. As women and minority groups become more demographically significant, corporations have been forced to absorb them in the workforce. Diversity in the workforce should not be viewed as a problem but a process that can be leveraged to attain higher levels of performance. In addition, due to rapid globalization, traditional borders have become blurred and employees from many diverse backgrounds are becoming members of employing organizations. These employees bring with them a diverse pool of talents that organizations can capitalize on to improve productivity. The subject of diversity has attracted huge interests from the scholars. This paper examines the relevance of diversity in an organization, application of diversity management in the hospitality industry, how diversity management can be implemented in an organization and some of the disadvantages that are associated with diversity. Before addressing these issues, the paper looks at the history of diversity management besides defining the key terms.